Ethereum Price Surges to $5,000 as Exchange Reserves Dwindle

The cryptocurrency market is set to end the third week of July on a bullish note. Bitcoin hit a high of $67,466 on Friday, marking a weekly gain of 15%, while the price of Ethereum climbed to $3,540, registering a 13.7% gain on the week. Moving forward, Ethereum will be in the spotlight as five Ethereum spot exchange-traded funds (ETFs) are set to begin trading on the Chicago Board Options Exchange on July 23.

Ethereum Price Poised to Hit New Milestone With Upcoming ETF Launch

Ethereum Price | Tradingview

EthereumThe second-largest cryptocurrency by market cap has seen a remarkable recovery over the past two weeks. The bullish reversal saw it surge from $2,811 to $3,481, registering a growth of 23.8% as the market cap surged to $419.2 billion.

The recent price surge above the daily moving averages (20, 50, 100 and 200) accentuates a positive shift in market sentiment. Moreover, the 4-hour chart has revealed the daily V-shaped recovery in the form of an inverse head and shoulders.

This bullish reversal chart pattern signals a bottom formation and potential for a new breakout opportunity for traders.

Additionally, Ethereum’s transition to proof-of-stake (PoS) catalyzed a significant decline ETH exchange reserves, as on-chain analyst elcryptotavo points out. Since the implementation of PoS, Ethereum holders have increasingly chosen to stake their ETH, reducing exchange liquidity.

Approval of the Ethereum ETF has further intensified this trend by providing a new investment vehicle for institutional and retail investors. This scarcity effect is expected to drive Ethereum prices higher as supply constraints become more pronounced.

Additionally, the Chicago Board Options Exchange (Cboe) has officially announced that five Ethereum spot ETFs, managed by VanEck, Invesco, Fidelity, 21Shares and Franklin Templeton, are set to begin trading on July 23.

So, the Ethereum Price Prediction suggests a potential break of the overhead neckline at $3,550 and a 9% upside before challenging flag pattern resistance.

Ether coin has developed this continuation pattern over the past 4 months of consolidation. The pattern’s two parallel trendlines as major resistance and support allow buyers to recover from bullish exhaustion.

The Relative Strength Index indicator at 59% indicates a positive trend for ETH’s future and the potential to enter high momentum.

A potential break of the flag resistance would better signal the continuation of the uptrend and encourage buyers to pursue the $5,500 target.

Related Articles

Frequently Asked Questions

Ethereum spot ETFs are exchange-traded investment funds that hold Ethereum as their underlying asset.

A drop in ETH exchange reserves refers to a decrease in the amount of Ethereum held on cryptocurrency exchanges.

Amid the upcoming launch of Ethereum Spot ETFs and the formation of a continuation pattern flag, ETH price is well positioned to challenge the $4,891 high

Source